Mexican Peso boosted by falling US Treasury bond yields

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• Mexican Peso recovered from Monday’s dip, with USD/MXN trading around 17.46.
• Banxico anticipates maintaining the overnight cash rate unchanged at 11.25%, with market pricing in a steady approach for the upcoming policy decisions.
• Federal Reserve’s pause in rate hikes last week has led to a 3.75% appreciation of the Peso against the Dollar.

Mexican Peso (MXN) extends its gains past the mid-North American session, even though the Greenback (USD) continues climbing over most G8 currencies. Still, the emerging market Peso remains driven by the Bank of Mexico (Banxico) next Thursday’s monetary policy meeting. Speculations that Banxico will keep rates high, at 11.25%, underpin the Mexican currency, as the USD/MXN is trading at 17.46, down 0.45%.